A similar question was asked here, but in this case they were looking to move to a family plan.
My situation is my spouse and I are currently on a HDHP/HSA through my employer, because at the time she was unemployed. We maxed our HSA family contributions for the year and are making monthly payments from the HSA for both our health expenses. For January 1 we plan on moving to individual accounts.
My wife now has a new job and the employer offers a low-deductible plan with FSA option.
My questions are:
- Can I continue with my individual HDHP from my employer and change my family HSA contribution to an individual; and at the same time can my wife do the individual FSA? Would this avoid a conflict?
- If my wife does change plans, are we allowed to continue to pay for her prior expenses from the HSA? How about future expenses; can any remaining funds from "her half" be used - this would seem to be a case since I would no longer contribute to a family; or can the funds only be used for my expenses moving forward?
- If it's the case I cannot contribute at all to an HSA if she uses an FSA, then if she does not fund the FSA, can I continue to fund the HSA as an individual?
It would be great if there was an article that clearly talked about these split household scenarios. In your responses, please number them similar to my list so it is clear what it is answering, since I find all of this confusing.